On Monday I sold a 20 contract $74.50 Call on RH. I received a premium of $2000. Yesterday the stock went down and I bought back the Call for $400 taking a $1600 profit. With this stock being so volatile, my hopes were that the stock would come back up so I would be able to sell another Call. Today with an up market I put in an order to re-sell the same 20 contract $74.50 Call for 50¢ ($1000). It took a few hours but I was just executed on the Call. I sold a 20 contract 9/29/17 $74.50 C for a 50¢ premium. This is just what I needed to make a great week. I already have a few closed trades so if this works nice I’ll be very happy with the week. This is a Covered Call on previously owned stock so the trade in a Risk Factor 1. 50¢ is a little less than I look for with a $72 stock, but there’s only 3 days to expiration and I wanted to go out a little with the Strike Price because of the volatility. If the stock goes up I want to enjoy a little more upside on the stock gain.
Sell to Open 20 RH 9/29/17 $74.50 C @ 50¢ (+$1000)
This might be the last trade for the week. I’m holding a good amount of stock and I have Calls sold on most and still have enough margin to be able to take my $4000 draw at the end of the month, which is Saturday. I love taking my monthly money to enjoy life a bit.
Steve
The Options Coach